Wall Street Unplugged
Episode: 1122March 13, 2024

NYC… CPI… AI… Oh my!

I was in New York City over the weekend visiting my 80 year old father-in-law. While I enjoyed bagels, pizza, and attending a St. John’s basketball game, I couldn’t be happier to be home and out of the northeast weather.

Turning to markets, I break down this week’s CPI (consumer pricing index) report and explain why, despite the hot inflation reading… stocks moved higher.

I share a lot of data on why investors must be careful what they wish for when it comes to the Fed cutting rates.

Another trend getting mainstream attention is the massive amount of layoffs at big tech companies, despite record profits and record-high stock prices.

The reason is simple… and I’ve been telling you it was coming since January… AI is taking jobs. I break down the ultimate winner in AI right now and why this is just the beginning of this life changing trend. 

Every company in every industry will leverage AI because it’s the holy grail for businesses. 

I’m so excited about the opportunity ahead in AI that I’m holding an event to show you how to make life-changing gains from this incredible technology and answer your questions live. Join me for free at curzioai.com.

Inside this episode:
  • Visiting the Big Apple [0:48]
  • CPI coming in hot [5:45]
  • When you should sell stocks [9:04]
  • People are losing their jobs [13:52]
  • This is the key to AI [23:24]
  • Don’t miss our live AI event [33:51]
Frank Curzio
Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 12 million times.
Transcript

Wall Street Unplugged | 1122

NYC… CPI… AI… Oh my!

This transcript was automatically generated.

Announcer: Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on Main Street.

Frank Curzio: How’s it going out there? It’s March 13th.

I’m Frank Curzio.

This is the Wall Street Unplugged podcast where I break down the headlines and tell you what’s really moving these markets.

In today’s show, we talk about why investors should hope inflation does not get to the Fed’s.

the credit crisis and hotspot companies who are full of s**t.

We’re talking about AI.

But first, let’s begin with my trip to New York City this weekend.

My father-in-law turned 80, went there, surprise him, my family and the kids.

First time I’ve been there with the kids in a very long time.

Forgot I was there about two years ago.

Wife threw a nice 50th birthday party, surprise birthday party for me with all my friends in New York, but my kids haven’t been there pre COVID.

I think it was maybe 17 or 18, 2017 or 18.

Right away we got bagels, we got pizza.

So now I gotta workout.

Definitely don’t live with myself when it comes to the food in New York.

It’s much better than Florida.

It’s one of the benefits.

And I missed New York for about 30 minutes just when I was in a place one of my daughters asked, she’s like, wow, dad, how come they’re working so hard back there? Which is a lot different from, from Florida.

I mean, she noticed, right? Which I thought was pretty funny.

Uh, the pizza was fantastic.

Went to go see a St.

John’s game, which was rocking by the way.

I don’t know if you’re familiar with St. John’s basketball.

I grew up in Queens, New York, Carnesecca days, Chris Mullen Days and Big East used to be one of the best conferences.

Carnesecca, Georgetown, you just Seton Hall, Roy Massimino, I mean, just all of the greatest players in New York City.

You know, some of ’em have was fortunate to, to play against.

It was great, right? Those are the schools they went to.

Now they don’t recruit, right? Villanova used to recruit a lot of them, but Jay Wright left.

So they’re not that good now.

But St. John’s has sucked for a long time.

It’s the first time they’re gonna make the tournament in five years.

But they haven’t won a game in the tournament in 20 years.

So this game was big and they won.

They beat a choice.

It was, it was electrifying.

Again, when you have a team that normally doesn’t win, it was kinda like when I went to Eagles in the Super Bowl, They just lost.

Well, when they beat the Patriots was Eagle fans.

’cause the Patriots were like, we’re sick of gonna Super Bowls ’cause we’re in it every year.

We can’t afford it.

But when you see that with St Che, What’s that? It’s pre-party in the city.

It was really, really, really cool.

It was a lot of fun.

Uh, took the Long Island Railroad there, so lots of homeless people and that’s when everything started shifting.

I mean, tons of homeless people.

It was a little dirty.

People going to the bathroom and stuff.

It’s crazy within the city and it’s okay like during the day, but at night, you know, they tell you, you gotta really be careful.

You know, we all hear reports and everything.

But again, I like to report when I’m actually there.

That’s the city I grew up in 40 years, but I didn’t appreciate the 40 degree weather with 35, 40 mile an hour wind with rain going sideways.

It was ice cold like almost every single day.

We stayed in Long Island across from Eisenhower Park, literally right across.

And it was crazy to see people actually golfing in that weather, which is nuts to me.

I mean, if it’s 60 here, people have scarfs on in Florida and, and you know, golf courses almost closed.

It’s crazy.

That’s freezing to them.

But that’s all.

I mean, I, I, I paid for the Airbnb and it was so expensive.

I thought it was gonna be a nice place and it’s just, I forgot it was New York, you know, you have to pay three times as much and get less what you pay for.

Everything’s very old.

But, I didn’t miss it a lot.

My kids were like, wow, this is so cool.

This is nice.

This is awesome.

Then by the end they were like ready to come home and the weather’s much more nicer here.

But, you know, I missed it for a little while, but I, I can never move back to New York.

I just can’t.

Just the traffic that you see there, the things you pay for the politics around it too.

I didn’t even know if they’re not allowed to use plastic bags in supermarkets anymore.

No plastic bags.

I didn’t even know that.

Just certain things that are just forced upon you.

But yeah, I can never, I can never go back to New York.

Now being in Florida, I do miss it.

I have lots of my friends there, but it was really, really cool trip.

But it’s good just to go there for trips.

I dunno if I’m gonna go there for business.

There’s not a lot of conferences that I go to that are there now.

Same with California as well.

I’m probably gonna head back to Vancouver pretty soon.

I haven’t gone there since, COVID, but I love attend conferences and, and you know, speaking at a lot of these conferences as well.

But New York was fun.

Happy birthday to my father-in-Law.

It was a great, great time.

Really good seeing them.

They are getting older, you know, so I definitely want my kids to be there and see them and everything.

They can’t really travel anymore.

So it was a really, really good time.

And, and you know, something I tell everybody to do, you know what I mean? Especially my kids.

My kids don’t appreciate their parents at all.

They yell back and think they know everything When it comes to other people, especially the grandparents, they have a lot of respect.

They love hanging out with them.

They smile a lot.

They try to do TikTok videos with them and you could just see the face of, you know, my mom and, and you know, the in-laws and stuff like that of of how important it’s to them, you know? And I’m sure I’m gonna be there one day.

So it’s just real, really cool to do that and to see that it was a really, really good experience.

He was really surprised to see us and upset and everything.

So it was a really, really good time.

And yeah, so that’s my New York story.

Pretty cool.

But I dunno if I’ll be going back other than seeing family anytime soon.

But let’s move on with the CPI data, which came out yesterday showed inflation is at 3.2%.

What does that mean? Eh, you know, 2% is the core, right? Or 2% is the Fed’s target.

The core act, which ex excludes food energy was 3.8%.

So, which is close to 4%.

You the example a lot that we were never below 4% any year on the CPI dating back to 1991.

So at 3.8 it looks great because we were at nine, nine point half.

But both of these numbers remain high and they were both higher than expected.

And you could say, well inflation’s moderating, inflation’s no longer moderating.

I mean you have to go back to, to June to June, 2023 when the downtrend ended in inflation.

It’s been up every single month after that.

It’s floated like three going on at three, three and a half, whatever.

But it hit the bottom right? You have the trend.

And if you could look, if you look at CPI, it bottomed in June, 2023.

It’s been higher ever since.

You can’t say, well it’s moderating, but when the report came out, it was not good.

It was, it was not the results that, that the market was expecting.

So yields go higher, the bond market, right? You expect stocks to go low, but they didn’t.

They didn’t on a bad inflation report.

So why did that happen? And when you look, it’s kind of simple.

And if we look back at history and pay attention to this guys, it’s important.

If you wanna be long stocks, you need to pay attention to this.

’cause right now it’s a lot of fun.

Everyone’s a genius.

Everyone’s doing good.

Even all of our portfolio’s doing great, everybody’s great.

The market’s going higher.

It’s awesome if you’re in the right areas and we are in the right areas, especially within AI and crypto and stuff like that.

And you guys probably doing very well throughout the products.

We look back at history, the best time to sell stocks is when is when the Fed pivots and starts cutting.

I know it sounds crazy.

If you look at CNBC, you would think otherwise since everyone that’s been bullish, everyone since the November, 2021 lows, or should I say 2022 lows, the number one catalyst was the Fed is going to ease.

They’re gonna start lowering rates and that’s gonna be a boon to the economy.

I guess that makes sense, right? When you lower rates, it means it’s easier for borrowers, which is consumers businesses to get loans.

It’s easier to buy homes, right? Lowering more mortgage rates.

Why the housing marks are little frozen right now you have to pay less interest on your debt.

Credit card student loans.

So it makes sense if you’re lowering rates.

When we look at rising rates, it does the opposite.

Increase cost for consumer businesses holding debt much tougher to get loans at higher rates.

However, guys, when it comes to the stock market, the stock market is a forward looking mechanism.

Now what the hell does that mean? It means it’s always looking ahead.

So lowering rates is not a positive sign for stocks since it, it signals the Fed sees tougher times ahead and be saying, Frank, you know what? I had it.

I think you’re full of s**t.

You’re talking out your ass, you have no idea.

But let’s look at the data and let the data do the talking for you.

Which is what I do here.

Don’t you shout out numbers and shout out stuff and say we wanna look at data.

This data, what I’m gonna tell you now is a hundred percent accurate.

It’s not even like, well 50%, 70% of the times are played the lives.

No, this is a hundred percent of the time.

Okay? So we started 2000, the dot-com bubble and then the burst.

And believe it or not, the Fed was still raising rates, still raising rates after the March, 2000 peak at the stock market.

So they had one rate hike in March and one in May.

Then the Fed said, okay, hold up.

We gotta start car cutting rates.

And that was in January, 2001.

They started cutting rates, the market was coming down and they did that and cut rates into June, 2003 13 cuts in total.

And what happened during that streak, the NASDAQ crashed by 27% while they lowered, while they cut rates 13 times.

And what happened is we fell into recession.

That’s one example.

I’m gonna give you every example.

I’m gonna give you every example dating back to the sixties.

Let’s do the credit crisis next.

A lot of us familiar with it.

Maybe some of you listen to this podcast just gotten to the market past few years.

Last five, six years, you don’t remember the credit crisis, okay? The Fed hiked rates 17 times from June, 2004 to June, 2006, flight to the economy.

What happened? Well they were hike rates ’cause the economy was just, you know, just going crazy.

It’s going higher and higher and higher.

Things were great.

So they said, let’s try to slow it down.

They didn’t slow down fast enough.

So when the s**t hit the fan, and that was in 2007, the Fed started cutting rates.

They started September, 2007.

Remember they hiked 17 times from in 2004 through June, 2006, 17 times they hiked in 2007, September, 2007, they started cutting and they cut through December, 2008.

They cut 10 times in total.

Market’s supposed to go up when they cut, right? That’s what we’re told.

They stopped cutting in December.

And you say, well Frank, I remember the market bottomed in March, 2009.

So why didn’t the Fed keep cutting? Because they couldn’t ’cause they pushed races zero, they couldn’t cut anymore, they were at zero.

But all this time, September, 2007, December, 2008, when the Fed cut rates, they ease, the market crashed 51%.

And you guessed it, we fell into recession again after the Fed pivoted and starting to cut.

Now 2015, 2018, the Fed started raising rates again.

Market was going up, ramping higher.

The raise rates nine times.

Same thing is happening now, right? Raise rates, but you’re keeping ’em there.

But the market’s booming.

Then in March, 2000, the Fed came out with the emergency rate cut of a hundred basis points.

Something you rarely see, usually 25 basis, maybe 50 rare see 100 basis.

But we needed it, right? We were locked down, the economy now lost 30% over the next month or so.

And we fell into recession again after the Fed pivoted.

Now those are the three recent examples and the only three examples, and that’s from 2000.

But let’s go back to the sixties and the seventies.

I’m not gonna bore you.

There’s three of ’em.

And when the Fed started cutting, pivoting, we saw the market fall on average of 37% these three times.

So based on history, when the Fed starts cutting, when they pivot, right? Everyone’s like the Fed pivoted December and then they took it back really quick.

You know, they took it back.

We’re not pivoting when the market did go up for some reason, they’re not looking at the history when the Fed actually pivots.

When they say, okay, we’re cutting rates.

This precedes major pullbacks in stocks every single time it’s 100% accurate.

And when the Fed pivots, it precedes a recession every single time since the sixties.

As far as I went back, I didn’t wanna go back any further, it’s a free podcast.

I didn’t have that much time.

So if you’re hoping for inflation to pull back closer to 2%, which is the Fed’s goal, we all know 2% wanna get back 2%.

And it’s been hard because like I said, that trend in moderation, that trend bottomed in June 23, they’ve been going up in inflation ever since.

If you’re hoping for inflation to pull back closer to that 2%, that fed goal, which is definitely gonna resolve the Fed pivoting, it’s probably gonna follow with stocks pulling back sharply, our economy falling into recession.

So be careful what you wish for, even though every bull is citing that as a reason to buy stocks.

Do you remember why weight, this inflation number came out worse than expected.

Why are stocks going higher? Here’s why.

Makes sense.

Another story came out, layoffs in February, hit the highest level since the credit crisis.

And that’s 2009 for those of you just been around for a couple years.

So according to a report by Challenger Gray and Christmas, who’s been covering this stuff for 5,000 years, they’re very, very good at what they do.

It’s not 5,000, I’m exaggerating, they’ve just been doing it for a very long time and a very prestigious, this is what they do.

So looking at the data layoffs increased 3% last month from January.

We call that month over month, but we look year over year and we’re looking at 9% year over year from last February, right? This is the worst decline since February, 2009.

The credit crisis when it comes to layoffs, we haven’t seen a decline like this.

So we’ll be asking why the F is this happening? Why are we seeing so many layoffs? Biden keeps telling me the economy’s strong wages are going higher, unemployment rates has low as over 54 years and the stock market’s at an all time high.

Why the hell are we getting so many layoffs? When you look deeper at the numbers, numbers, according to this report, most of these layoffs are coming from restructuring, which is a lot through technology, but more specifically it states they’re seeing a huge transformation in robotics in automation caused by AI.

I’m seeing it, I’ve been telling you about it.

When you’re seeing companies like Meta, Amazon, Google, Salesforce laying off tons of workers and when they lay off workers and they’re cutting CapEx, which they did in 22 to 23, you know you’re gonna spend more than make more.

If you’re not spending as much, you should have saw sales come down a little bit, you know, maybe earnings a little bit better, but you have to take charges and stuff like that.

But surprisingly, their sales margins and earnings absolutely sort to levels they’ve never seen.

I mean, hell you, you look at IBM is approaching an all time high, right? $200 a share.

First time ever on fire.

Looks like AI data analytics finally working after so many years of IBM, holy cow.

And what they do yesterday announce more layoffs, but they’re stocking an all time high.

And this is after they laid off about 13,000 employees last year.

Two big rate cuts in January and August and now they’re going with another round.

And what the NB IBM say, which I thought was amazing that I actually took the quote, it’s a quote they said that massively upskilling, upskilling, I dunno if that’s really a word, but they have that and I know what they mean by it.

Massively upskilling all of employees on AI.

That’s actually what they said in the press release.

You know, AI, goodbye.

That’s that says.

So what do you think every software company, cloud company, gaming company, healthcare company is doing right now when it comes to ai? Make no mistake, AI is gonna take the place of millions of jobs open AI founders said 80% of jobs are gonna be at risk, I know that sounds crazy.

You know why? Because we heard this s**t in the past.

Even guys who listen of my podcasts and technology would do this, Frank, you know what? I disagree.

I heard that a lot in my 20, 30 year career.

I agree, I hear you.

Assembly line’s gonna kill jobs.

The internet’s gonna kill jobs, computers gonna kill jobs.

I heard it.

I know AI is different.

It provides an immediate effect for companies to lower costs while increasing productivity, which is the holy grail of every business.

How do I lower my costs and make more money? You better learn this technology Businesses better start using it because it’s a game changer.

It’s in its infancy.

So of course with AI, the hottest topic on the planet where everyone’s mentioning it on every single conference call since it results in a 10% plus pop in your stock to sound how AI that company went up Tenx, just because Nvidia invested like less than $2 million into that company, which is like 0.07% investment.

And that stock went to what? Billion dollar valuation or whatever it is, and pull back a little bit.

So you have every company you follow is saying how it’s using AI to improve its business.

Every company, if I torture anything, you know as well as I do, most management teams are full of s**t.

So how do you figure who’s full of s**t and who’s for real? You have to start looking at the quarter results.

Almost every company S&P 500 reported.

And it’s not just S&P 500, you wanna look in a small cap, mid cap level, especially ones that have beat their numbers and blew away the numbers and the analysts had no clue what the hell happened.

I’m able to see them, Daniel’s able to see them because we cover this stuff all through earnings season.

That’s our job.

That’s what you guys pay us for.

That’s why you pay for our newsletters to find these ideas for you.

And that’s what we need to do.

But start looking at quality results.

Dig into the it’s transcripts.

You can get ’em for free.

Seek an alpha, whoever, I don’t get paid by any of these services.

Just you know, go to the transcripts, I just conference call and just comb through it.

You can click find AI, see what they’re talking about, AI, how they implement it.

They’re not gonna have a division that says AI.

They’re incorporating these technologies into the current divisions and that’s why it’s very difficult to spot.

So you wanna dig into this stuff.

For example, software cloud companies should be seeing massive benefits right now from AI, massive benefits.

We’re seeing it in Amazon.

Meta, Microsoft, CrowdStrike, Alibaba, ServiceNow, Dell, Palantir most recently Oracle, which is a Dollar Stock Club pick up huge for us.

Keep saying it man, I gotta charge more for that portfolio.

to listen to me and Dale do a podcast.

And I have a portfolio which is a lot of stocks in there, but man it’s on fire right now and you know what’s gonna happen? As soon as I charge more, the portfolio’s gonna go to s**t.

That’s why I wanna charge more now.

I’m just kidding.

I’m gonna keep it at that price, don’t worry.

But really that’s, it’s a great portfolio.

It’s a trading portfolio.

It’s great for you guys.

Holy cow, you won’t find anything on the market.

Forget about performance, it’s just a price.

Everybody charges a thousand dollars a year for something like that.

Was it $10 a month? But Oracle’s another name benefiting.

But what about Snowflake? How come they didn’t benefit? Why didn’t Snowflake benefit Upstart Palo Alto, why didn’t we see this? It’s a big red flag.

People are like, oh well pullback, I’m gonna buy the pullback.

Be careful buying the pullback.

AMD’s at a 52-week high.

Salesforce had a 52-week high.

To me, that’s the bubble when people say bubble in AI, ’cause I really didn’t see it@salesforce.com and I didn’t see I, we don’t see the AMD I listed the CEO.

She’s fantastic saying like we have all these parts that incorporated just, it’s just us in a video.

Who could do this, could do this.

Well you know what, you haven’t benefited yet.

I haven’t seen you put up the numbers.

So when I see this, why are these stocks not benefiting from ai? They should be in mi right in the middle, smack in the middle of this trend.

This is a multi-trillion dollar trend benefiting.

You have to be benefiting at least start benefit right now.

Also, when I went to to the CES, I took that executive tour, which is just, you pay a lot of money and they, it’s a special tour.

About 15, 20 people pay a lot of money and they go around and it’s totally ai just going around the biggest companies with AI, you get to talk to the management teams and explore different things.

Remember there’s 43, 4500 companies there.

They’ll point you in a direction of maybe 50 that you have to look at within AI.

You get to ask questions.

They have all booklets on it, stat statistics.

It’s really cool.

They call it executive tour.

Every single company.

Every single company.

Not just on that tour.

Every single company I went to go see told me how they were using AI.

Every one, I’m using music.

Your favorite songs play AI.

Then it generates AI and what your preferences are.

Cooking grills, AI, keep cooking on it and it’s gonna generate exactly how, what temperature to cook.

Whatever you’re making on how you like it the most, whatever, everything’s AI, it, it’s a huge red flag for most of these companies because they have to own the data.

And if you don’t own the data and AI is not gonna be meaningful.

You could use it Jasper AI or different programs for sales emails in generative AI to help your business out and stuff like that.

That, that’s fine, I get it.

But I’m talking about owning the data and being able to, to analyze that data more quicker than you ever analyze it and come out with outputs, inference it’s called what’s coming out and saying, okay, for Amazon, whoever bought, you know, whatever a golf club and this and what and whatever it is, chances are they’re going to buy this, which is, you know, maybe not golf related, but they, they’re able to show patterns and we’re all creatures of patterns.

Everyone in the world is, we all do the same things every day, right? We wake up the same time, right? We take the same route to to to work, we talk to the same employees, we have similar conversations, we drink coffee at the same time.

We go to the bathroom same time every day.

We usually shop and go on vacation same time, right? And all the companies are monitoring this constantly trying to figure out what you’re gonna buy 10 minutes from now.

Now AI is capable of showing you that and you don’t need a lot of people running these systems anymore.

You don’t need a lot of coders running these system of building the systems anymore.

That is done through Nvidia.

So you can use it for customer service, sales emails, again, different platforms, but using AI to crunch data yet you have to own the data.

And these companies don’t have the data.

Where are they getting the data from? ’cause the only way you get someone’s data is if you steal it seriously.

If there’s anything I, I just want an Apple TV and Apple TV by accident.

I did this.

So I have Apple TV and a bunch of other streaming platforms.

So it it, when I first launched it, it goes to Apple TV and it showed the last movie I watched on Max and when I clicked it, it was going through the AI app and it said in order to watch this, instead of going directly to the Max app, which I usually do only this for the first time, it actually said in bold, and it didn’t say like in a disclaimer, it said, we are gonna share all your data with everyone from Max and Apple and whatever that.

And I said, no f*****g way, no way.

I just went to Max and went right to to, to play.

So my point is, if you have to put a disclaimer in bright red, which basically you have to do, now let’s show one of the largest technology companies and say we’re gonna take this data and we’re gonna analyze and send it to everybody.

You’re gonna say no.

So the people who own your data already are the biggest technology companies of the world.

The Amazons, the Metas, the Microsofts, they’re gonna benefit the most.

’cause data is key.

I have to tell you the research I’ve been doing in this space and cover 200 small cap names under $5 billion market caps, over a hundred million dollar to $5 billion market caps.

They’ve been in operation for decades.

Some of these have been operating for a century, but they’re just small caps people used to buying them, okay? They pay a little bit of dividend, they have small earnings grow.

This is a good company and, and whatever.

And maybe they, there’s a inconsistencies where the stock might sell off 20% a year, have a bad year and you buy them and whatever.

Just good names.

You have to see what these names are doing right now.

They’re not boring companies.

They’re growing earnings by 20% and analysts are like, what the hell’s going on? They’re supposed to, you know, earn 95 cents a share and they earn a dollar 40 and they’re like whoa, okay.

There’s one time items.

No, there’s not one-time items.

You’re taking market share because they’re using AI because they have all the data from these customers for a hundred years.

And believe me, if you’re a developer, who do you wanna go? You wanna go to Nvidia? Yeah, NVIDIA’s cool and all these companies are cool, you’re gonna be a hundred on the list.

Don’t you wanna go to a small cap company where it’s market cap increase by 10 20 fold where they’re gonna give you options? Isn’t that a great place to go? And that’s what I’m seeing from the, from developers in this industry that I’m talking to.

Go to these smaller companies that have a load of data that don’t understand AI.

Now they’re getting into AI and you’re seeing it in their results.

There’s not many but you’re seeing it and the results are insane.

So those companies are gonna make their way into our new Curzio AI portfolio.

Because when I saw some of these names, the broad earnings, the sales, everything, I mean Wall Street was caught off guard.

I’m like what the hell is happening? Even with, even when you look on a bigger scale like Meta, how does Meta have a 65% increase in sales when you cut 13% of your workforce and cut CapEx? It’s impossible.

I study numbers is something you don’t see what happened.

You have to, why did this happen? And when you look, it’s because of AI.

This is where the money’s gonna be made.

Talk about launching Curzio AI, your newsletter focusing 100% small mid cap stocks launch in a few weeks already published our first beta issue.

Our next beta issue is coming out next week.

We’re gonna be holding a live event to go over everything about this remarkable trend.

I’m attacking it from a much different perspective.

It’s not Nvidia AMD, Microsoft, Amazon, Meta.

It’s not those companies.

Companies newsletter are mostly names that you never heard of not being covered in, in in the media.

It could be industries, healthcare, education, utilities.

And man, you gotta see what they’re doing in utility sector with AI.

Again, things you’re not, not hearing or talking about, only ’cause I’m digging in deeper, deeper going, holy s**t, this makes all sense in the world.

But they need to do this to stay ahead of the competition.

And it’s not only just to stay ahead of competition, they’re starting to take market share from their large cap competitors.

So you got these a hundred year old boring companies, tons of customers and people used to buy ’em nice dividend.

That’s cool.

These are okay.

And you know, maybe some of ’em are even dividend aristocrats, they’re not slow growers anymore.

They’re growing earnings.

20, 30% cutting costs by 20%.

The stock’s hitting all time highs.

I mean companies that make like all the plastic shells for all the retailers, like s**t, you know, you don’t even look at or care about, you know, a lot of these names.

It’s like, whoa.

It’s like, what the hell’s happening here? And it’s just the beginning.

It’s like seeing Nvidia at an all time high in May.

I always say, I got that one wrong because my expectations are too high.

You shouldn’t be trading at 300.

’cause the the expectations is like, there’s no way they’re gonna beat that number.

They didn’t just beat it.

They, they, they blew out the numbers.

The best quarter I’ve ever seen any company in 30 years, I’ve never seen a number like that.

And for me, as competitive I am, I’m not like oh f that now I’m definitely, you know, I’m gonna buy more.

I wanna know why, why do he get it wrong? Right? This just for me, I’ve always looked at that and, and when it comes to investing, when it looks what comes anything, I always wanna hear the o the other side, someone else’s opinion.

Why am I wrong on this? Right? There’s no ego.

It’s, it’s, it’s about learning.

It’s like I wanna get this right next time for everybody and for myself.

You looking at Nvidia blowing out that number, you know where the stock went, it went from 300 to three 80 in a day after reporting those blow out numbers, it was like holy cow, I’ve never seen anything like this.

And back then I know what everyone was saying.

They’re like, s**t, I missed the boat.

NVIDIA’s over $900 a share.

What is that? And now I’m hearing on on CNBC, they’ll bring on guys and say well it’s all AI hype.

It’s not hype, it’s because of demand who get invidious earnings search.

They were $0.

30 and 34 cents in earnings in 2023 it went to $13 in 2024.

You do not see that happen ever.

I’m not talking about a company that went from 5 cents to 20 cents, I think $13 in Super microcomputer up 10 x in a year.

And people are like, wow, it’s a bubble stock.

How come I couldn’t get it? It’s not hype.

Hype is expectation.

AMD is hype right now.

Salesforce.com is hype.

There’s hype behind those names hoping that they’re gonna get it right and maybe they do when they fill in evaluations.

There’s no hype behind Nvidia.

They got the numbers super micro earned $5 in 2022, they’re gonna earn $21 this year.

And I’m not telling you to buy those names here.

At least if you want life changing gains ’cause you need to go to where the puck is going.

Not where it’s, we hear that analogy a lot Wayne Gretzky.

But it’s true.

I look at crypto, I mean I marketed the s**t outta crypto and the Crypto Intelligence newsletter we have six months ago, right? Bitcoin was under 20,000.

The halving was coming.

I’m like after the, after the half of the ETF approvals are coming, then you have the half incoming and you’re gonna see this constant news flow.

It’s, it’s not, it’s a secular bull market forever.

Now’s the time to get in and where are we in Bitcoin? And I pushed it again not Bitcoin but two months ago saying Listen, Bitcoin’s up, start buying the al coins.

’cause if you believe that Bitcoin’s on its way to a hundred thousand, which most of us believe and I believe and I don’t know when that’s going to happen.

It’s probably gonna happen a lot sooner than I originally thought than oil coins significantly outperformed Bitcoin during these bull markets.

And what happened, we had a live event called crypto 20 24 5 picks on February 7th.

They’re up an average of 70, 75%.

I mean that’s great for subscribers.

That’s why I do this.

If I don’t show you gains, you’re not gonna subscribe to anything.

We don’t have a business.

But for subscribers it’s the fir first month of being a member seeing those gains.

It’s probably gonna pay for their subscription for the next 15 years.

It’s the same with AI.

This urgency here, I mean 75% of the companies have yet to implement it but said they plan to.

And everyone’s still talking about Nvidia Meta AMD, that’s where the puck is.

Where it’s going is a small and mid-cap stocks just starting to use AI to increase productivity.

This is where you’re gonna see the same earnings explosion we saw at Nvidia and super micro growth.

That’s the next wave.

And they’re starting to take market share away from larger cap companies that have dominated these industries for decades because they’re not really getting into AI as quick and they’re gonna wind up acquiring these smaller companies.

That’s what’s gonna happen.

That’s why if you’re a smaller company, start integrating AI.

It puts you in a position not only benefit from your own company but your larger competitors are gonna come and be like, holy s**t, we’re gonna have to acquire these guys.

’cause one thing these larger guys do have is a lot of cash and the bigger you get sometimes you become Intel, Blackberry, you become these companies that fail to innovate, which Apple is right there.

I mean I’m not saying they’re gonna be fall the same, you know, same downturn as as an intel.

But you see what happens when you’re late to the party.

But that’s how you make a fortune in the stock market by buying these names that are gonna come become, you know, not in a bubble or in a hype that are gonna see earnings explode because of these new technologies that they’re using, that they’re implementing ahead of everybody else.

And when I say small caps, you think these small companies, these are companies, a lot of ’em have been around for 30, 40, 50, 60 years within the same industry with all these clients.

Hundreds of, you know, even thousands of some of the, some of the biggest names in the industry that they’re doing a specific service for.

Now they have all the data on this stuff and how to, how to make it even better for them.

How to get my product to you.

What furniture and and logistics.

Okay, you go to a store, well they say six weeks.

Well you come to me, it’s gonna be a week, I’m gonna get it to you in a week and it’s gonna cost you less.

Who are you gonna use? There’s gonna be a line around a block.

Everyone’s gonna lose all their other people, all the other people that they’re using and they’re gonna come to you.

That’s what AI’s about.

So in two weeks launching live event, why set about AI industry’s gonna impact how to potentially make life change returns without investing all your capital in this trend.

Sure, exactly where to invest it.

Sharing new names with you, providing cool examples.

It’s gonna blow your mind on what AI could actually do.

I show you this stuff and test it, but at the end of the event, trust me, you’re gonna understand how insane this trend is and importantly how to invest in it.

What’s gonna be holding an hour q and a to answer all of your questions, including how you become a member of our newest product, Curzio AI which gonna offer a substantial discount to where we’re gonna sell this product outside of our list.

If you’re interested in attending this free event, go to www.curzioai.com.

The register can absolutely free to watch it.

Say Frank it full of s**t, I don’t like it, whatever.

Trust me, it’s definitely worth this.

Especially if you watch the crypto events, you saw what happened, you know why we pushed that so much.

There’s certain times to invest in certain sectors.

Not telling you to go all in on AI.

There’s a lot of bubble stocks out there, but there’s a lot of names that are just starting to use this technology.

You know, lots of bonus reports screen.

I’m gonna hand you 200 of small caps.

I’m currently looking at, talk about names that, that you should avoid at all costs that are saying they have AI.

Be very, very careful, not too difficult to spot which names are full of s**t.

Again, this is a trend infancy.

Very, very excited, very excited to teach you about it.

If anyone out there that that’s in this industry, please reach out.

And several people reach out.

I can’t believe some of these people actually listen to this podcast and doing a special interview on the 20th with the director of AI for the Mayo Clinic.

What is that guy doing listening to my podcast? He must be really bored.

Holy s**t.

It blew my mind.

Didn’t come to me.

I was like wow, this is great.

We got a great interview.

You know some gonna interview him.

Go over a lot of private companies.

Things that he’s seen within healthcare.

I mean holy cow, we wanna talk about disruption in that industry from AI.

That’s gonna be a lot of fun.

These are the people I wanna bring in front of you.

This is what I want to educate you about this trend.

’cause there’s a trend that you can make a lot of money on over a long period of time.

But it’s gonna be nice to get into these names early, especially names I’m looking at that are not that easy to find.

’cause it requires fundamental analysis.

Lots of digging, I like doing this stuff.

Gotta do it on a timely manner.

If you wanna get into these names early, but don’t worry, you don’t have to do any of the crappy work, dirty work.

That’s my job.

That’s what you pay me for and that’s what Curzio AI is gonna be about.

So again, CurzioAI.com if you like to register, learn more about the product and we’re gonna have a nice q and a afterwards where anyone can ask questions.

Usually the q and as, I shouldn’t say this last for two hours ’cause everybody stays on ’cause there are a lot of fun and just answering questions on fly and going crazy.

But you know, definitely for an hour, probably longer, as long as you people stay on, I’ll be answering your questions.

So this is it for me.

Looking forward to March Madness show to break down the brackets next Wednesday.

Got a little conference tournaments going on this week.

Had a bad year last year, man, it was bad last year, this year.

Literally 15 teams that could win it.

Lots of parody.

No clear dominators should be an insane tournament.

I’m seeing lots and lots of upsets right at the beginning.

I mean, you’re gonna see seven, eight seeds that are really good teams.

Kansas is gonna be on that line probably as a, as a six seed.

Uh, they’ll lose early in tournament.

The two best players are out and then they’re gonna be coming back for the tournament.

So, you know, again, top 10 team, that could be a seven or eight seed St.

John’s likely going to make it.

They should be in even if they lose the next game, if they win, they should definitely in.

That’s a tough team’s.

A lot of good teams and the big 12 that are, that are good, that could beat some of the best teams out there.

Uh, man, it’s gonna be a fun tour.

Make sure be really cool.

And of course I’ll give you my final four picks and that’s gonna be next Wednesday.

So questions of comments, I’m here for you, you frank@curzioresearch.com.

I’ll see you guys tomorrow on Wall Street Unplugged Premium.

Take care. Love this episode.

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I’ll tell you specifically what moves you can make today.

So this is gonna be about trading but big money in your pocket right away due to inconsistencies I see daily in the market.

I’m talking about specific investment ideas I’m recommending and tracking each week that I believe would be impacted directly by everything I just talked about today.

Plus, you’re gonna get the chance to go even further down the rabbit hole with me and my co-host, who’s Daniel Creech.

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Announcer: Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry.

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